NEC to make a run at PC industry

NEC is preparing to build its next generation of computers with the help of a $2.94 billion purchase from its major suppliers in Taiwan, China Economic News Service reported on Monday. NEC is Japan's leading notebook PC maker. However, the company ranks sixth in desktop computer sales worldwide and seventh overall in notebook PC sales. Last year, NEC purchased between 1.6 million and 1.8 million notebook PCs from its Taiwan partners, the news service said. That number is expected to increase to more than 2 million units this year as the company expands its focus beyond Japan and Europe.

NEC's manufacturing partners in Taiwan include Quanta Computer, Compal Electronics and Arima Computer. The report suggests that Asustek may also be in discussions with NEC to produce the new products. The news service cited a ranking official at NEC's Taiwan branch as saying that the company's R&D center built last year in Taiwan recently developed a security management system for use in locally made PCs. Last year, the facility focused on computer hardware and then software products.